Key insights
- B.Riley downgraded AST Spacemobile (ASTS) to Neutral from Buy, citing concerns over consumer pricing for space-based connectivity due to emerging lower-cost competitors. The firm also noted potential competitive disadvantages if Rocket Lab (RKLB) joins a rival venture. Despite operational milestones, B.Riley believes the stock fairly reflects current information pending clarity on subscriber uptake and pricing, leading to a reduced price target.
Investing.com - B.Riley downgraded AST Spacemobile (NASDAQ:ASTS) to Neutral from Buy and lowered its price target to $65.00 from $85.00. The stock currently trades at $57.04, reflecting a 38% decline over the past six months.
The downgrade follows recent operational milestones for the company, including the shipment of BlueBirds 14, 15, and 16 from its Midland, Texas manufacturing facility to Cape Canaveral. The company also confirmed full deployment of BlueBird 11, approximately 35 days after announcing successful deployment of BlueBirds 12 and 13, which launched on August 5 alongside BlueBird 11.
B.Riley cited concerns about consumer pricing for space-based connectivity as lower-cost, multi-tenant competitors emerge. The firm pointed to Viasat and Space42’s Equatys joint venture, which announced plans to begin launching what could grow to a 2,800-satellite constellation as soon as 2028.
The research firm noted that Equatys is seeking additional partners and expressed concern that if Rocket Lab, with its 8.725 MHz of L-Band spectrum gained from Iridium, were to join the venture, AST Spacemobile would face increased competitive disadvantage.
B.Riley said it maintains conviction in AST Spacemobile’s ability to build and launch a differentiated, broadband-capable direct-to-device constellation but believes shares fairly reflect available information pending clarity on mobile network operator subscriber uptake and service plan pricing data. The company, valued at $22.2 billion, remains unprofitable with revenue of $115.3 million over the last twelve months. InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value, with additional insights available through comprehensive Pro Research Reports.
In other recent news, AST Spacemobile reported its second-quarter 2026 financial results, which showed a wider-than-expected loss and revenue below Wall Street estimates. The company posted an adjusted earnings per share of -$0.77, missing the forecast of -$0.26. Revenue reached $31.52 million, falling short of the expected $35.18 million, although it more than doubled from the previous quarter’s $15.8 million.
In addition to its earnings report, AST Spacemobile has shown interest in acquiring spectrum licenses from Grain Management LLC, valued at $6 billion, which are considered valuable for providing wireless phone services directly from space. On the analyst front, Berenberg initiated coverage of AST Spacemobile with a buy rating and a price target of $92, citing the company’s technological leadership in cellular broadband from space. Cantor Fitzgerald also raised its price target for the company to $90, maintaining an Overweight rating and expressing optimism about future demand. These developments highlight AST Spacemobile’s strategic moves and the attention it is garnering from analysts.
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